Understanding the Claims Process

1.      How do I file a claim?

Every company is different. Some companies only want the insured’s making the claims; others will allow the agent to make the claim on the insured’s behalf. For example, with one of our companies, Progressive, they want the insured’s making the claims themselves. That means calling the toll free numbers and turning in your claim. Many companies also have 24 hour claim reporting on the internet. And there are also companies that offer in app claim filing. If you’re unsure what the best way to go about it is, go ahead and ask your agent what they recommend and what’s easiest for you.

2.      What kinds of questions will the claims representative ask me?

The questions asked by the representative will vary, depending on the claim type. Claims made on property are very different than claims made for automobile. Most common questions for both property and automobile claims are going to be your name, your policy number and date of loss. Automobile claims will also ask what vehicle you were in, if anyone else was involved, if there were any injuries and if the police were notified. Property claims will ask what type of loss, possible cause of loss as well as location of loss; such as roof, kitchen, garage, etc.

3.      I turned in my claim, now what?

Now that you’ve turned in your claim, you will wait for a telephone call from the adjuster that has been assigned to it. Most claim adjusters are assigned to various regions in the state, so even though it may be a massive company, they’ll have a claims adjuster fairly close by. It’s very important to answer the call from the adjuster, if the adjuster cannot speak with you, then the claim will sit still for a very long time. I know anymore that no one likes to answer phone calls from a number they don’t recognize, but if you’ve turned in a claim recently, you’re going to be receiving a call from your adjuster at a number you most likely won’t recognize. Once you make initial contact with the adjuster, they will most likely come to your location and take photos of damage, ask for pictures of damage if the claim is small, inspect damage themselves, request estimate’s of damage and ask for information on anyone else involved in the claim and just go over all details of the claim with you.

4.      After turning in my claim I don’t want to go through with it anymore, now what?

If you turned in a claim and decide that you no longer want to pursue it, most companies will allow you to withdraw the claim, at no harm to any claim free discounts you may have. A claim can no longer be withdrawn once you receive money for it though. The claim can only be withdrawn before any money has been paid out to you, your lien holder, mortgagee, etc. Always check with your agent to see what rules your policy carrier has about withdrawing claims.

5.      Will the claim impact my premium?

That all depends on the carrier. For example, our agency writes through one company who doesn’t count auto claims under $2,500, yet we also have another company that threshold is much lower, at $500. With property claims there likely isn’t any carrier that will allow a claim to go unnoticed. For many carriers you get a claim free discount if you’ve been without a claim for 3 years or more, so making a claim and receiving money from the claim, would remove that discount for the next 3 years at least. But it’s best to check with your agent to see what your company’s rules are for claims and discounts.

6.      Why is my claim check made out to me and a lien holder/mortgagee

Usually when a claim is made on property or automobiles and there’s a lien or mortgagee on it, the claims check to repair or replace will have that lien holder or mortgagee’s name on it. Even though you’ve been the one paying your premium monthly, the lien holder/mortgagee has insurable interest in what’s been damaged, be it your home or your automobile, since you are paying on that loan from them. It’s always very important to let your agent know when something has been paid off and present a lien or mortgage release, so the lien holder/mortgagee can be removed from your policy in the event of a claim.

These are just a few things that you can expect when you file a claim, whether it is auto or property. Again, every company is different and every claim process is different. Reach out to your agent to see how the claims process works for your policy carrier.

-Jordan Newcomer

Licensed Property & Casualty Insurance Agent